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THE MINISTRY OF FINANCE

THE MINISTRY OF FINANCE

CIRCULAR No.28/2000/TT-BTC OF APRIL 18, 2000 GUIDING THE IMPLEMENTATION OF THE GOVERNMENT�S DECREE No.176/1999/ND-CP OF DECEMBER 21, 1999 ON REGISTRATION FEES

Pursuant to the Government�s Decree No.176/1999/ND-CP of December 21, 1999 on the registration fees, the Finance Ministry hereby guides the implementation thereof as follows:

I. APPLICATION SCOPE

1. According to Article 1, Decree No.176/1999/ND-CP of December 21, 1999 of the Government, the following assets shall be subject to registration fees when their ownership and use rights are registered with the competent State bodies:

a) Houses and land, including:

a1- Houses, including dwelling houses, working offices, workshops, warehouses, shops, stores and other architectural works,

a2- Land, including agricultural land, forestrial land, rural population land, urban land, special-use land (regardless of whether or not works are constructed thereon).

b) Transport means, including:

b1- Ships, including barges, canoes, tug boats, push boats, hulls, ship engine set.

b2- Boats (excluding non-motor boats, of which the ownership and use rights shall not have to be registered with the competent State bodies as prescribed by law).

b3- Automobiles (including motorized land transport means with four wheels or more), frames and complete engine set, excluding machines and equipment other than transport means such as road rollers, crane trucks, excavators, bulldozers, tractors,�

b4- Motorcycles (including two wheelers, three wheelers including lambretta), frame and complete engine set.

Hulls, frames (referred collectively to as frame) and complete engine sets subject to registration fees, which are mentioned in b1, b3 and b4 above, mean frames and substitute complete engine set with frame and engine numbers being different from the frame and engine numbers of assets which have been granted the ownership and use right certificates by the competent State bodies. Where frames and/or engines are modified or repaired without changing the frame and engine numbers or only changing the engine bloc, they shall not be subject to registration fees.

c) Hunting guns, sport guns.

2. Domestic organizations and individuals as well as foreign organizations and individuals, including foreign-invested enterprises operating under the Law on Foreign Investment in Vietnam or not under the Law on Foreign Investment in Vietnam, that have assets subject to registration fees as stated at Point 1, this Section, shall have to pay registration fees before registering the ownership and use rights with the competent State bodies, except for cases not liable to pay fees as stated at Point 3 of this Section.

3. The following cases shall not be subject to payment of registration fees:

a) Houses and land being offices of foreign diplomatic missions, consulates and residences of the heads of foreign consulates in Vietnam.

According to Point b, Clause 1, Article 4 of the Ordinance on privileges and immunities for foreign diplomatic missions, consulates and representative offices of international organizations in Vietnam, the offices� are buildings or part thereof and the land associated with such buildings, which are used for the official purposes of the agencies. The offices of the diplomatic missions also include residences and land associated to residences of the agency chiefs.

b) Ships, boats, automobiles, motorcycles, hunting guns, sport guns of the following organizations and individuals:

b1. Diplomatic missions, consulates, representative offices of international organizations within the United Nations system.

b2- Diplomats, consuls, administrative and technical personnel of foreign diplomatic missions and consulates, members of international organizations within the United Nations system and members of their families, who are neither Vietnamese citizens nor permanent residents in Vietnam and are granted the diplomatic identity cards or official identity cards by the Vietnamese Foreign Ministry or the local external affair agencies under the former �s authorization. For this case, before registering the property ownership and use rights, the subject must produce to the local tax agencies where the diplomatic identity cards (red) or the official identity cards (yellow) are registered according to regulations of the Foreign Ministry.

b3- Other foreign organizations and individuals (representative offices of inter-governmental organizations outside the United Nations system, representative offices of non-governmental organizations, international organizations� delegations, members of other agencies or organizations as well as individuals) other than those stated at Points b1, and b2 above, that are exempt from paying or not liable to pay registration fees according to international agreements which Vietnam has signed, acceded to or agreed upon. In this case, before registering the property ownership and use rights, the subjects shall have to produce to the local tax agencies where the registration is made the following dossiers:

- The written request for exemption or non-payment of registration fees of foreign organizations or individuals that are implementing programs or projects in Vietnam (for individuals, the requests must be stamped and certified by the program/project managers).

- The copies of the accords or agreements between the Vietnamese Government and foreign governments on program/project implementation in Vietnamese language (certified by Public Notary or stamped and certified by the program/project managers). For special programs, projects and other subjects, for which the Vietnamese government stipulates in separate documents the non-collection of registration fees from foreign organizations or individuals registering the property ownership and use while working in Vietnam, the copies of such accords or agreements must not be supplied.

c) Land assigned by the State to organizations and individuals for use for the following purposes:

c1- The construction of traffic roads, bridges, sluices, pavements, water supply or drainage system, rivers, reservoirs, dykes, dams, irrigation works, schools (including dormitories, stadium, libraries of public and non-public schools), hospitals (including health stations, sanatoriums, public and non-public medical establishments), market places, parks, flower gardens, children�s play grounds, public squares, stadiums, airfields, ports, railway stations, car terminals and other public-utility works as specified by the Government.

c2- Mineral exploration and exploitation, scientific research under the permits granted by competent State bodies.

c3- Agricultural and forestrial production, aquaculture and salt-making.

c4- Building houses for business, for which the organizations and individuals licensed to conduct housing business activities have already paid the land use levy according to law provisions (except where houses are built for residence, for inn business, hotel business or for lease and other business activities).

Before registering the land use right, the subjects mentioned in Points c1, c2, c3 and c4 above shall have to produce to the local tax agencies where the registration is made the land allotment decisions of the competent State bodies. Where the assigned land is used not for the right purposes as prescribed, the registration fee must be paid.

d) Land leased from the State, organizations or individuals, that have been granted the land use right certificates by the competent State bodies.

e) Assets used exclusively in service of national defense and security, which are applicable to the following cases:

e1- Houses, land used exclusively in service of national defense and/or security are houses associated with land as prescribed in Clause 1, Article 65 of the Land Law and the Government�s Decree No.09/CP of February 12, 1996 on the management and use of defense and security land.

e2- Ships, boats, automobiles, motorcycles, used exclusively for the purpose of defense and/or security, of which the ownership and use rights have been registered under the names of agencies or units under the Ministry of Defense or the Ministry of Public Security.

The assets stated in Points e1 and e2 above, if being used for purposes other than defense and/or security purposes, or assets used not exclusively for defense and/or security purposes such as assets of units of the Ministry of Defense and the Ministry of Public Security, which are engaged in economic activities, assets in service of daily life of officers and soldiers, personal assets of officers and soldiers� are all liable to registration fees before they are registered with the competent State bodies.

f) Houses and land belonging to the properties of the State of the Communist Party of Vietnam, which are used as offices (including working office buildings and public-duty buildings) of State administrative and public-service agencies, the State judicial bodies, the administrative and public-service agencies of political, socio-political, social, socio-professional organizations, are prescribed at Point 1, Section I, Circular No.45/TC-QLCS of June 14, 1995 of the Ministry of Finance guiding the Regulation on management of working office buildings of administrative and public-service agencies.

g) Compensation houses and/or land (including those bought with the compensation money) given when the State recovers houses and/or land from organizations or individuals who have already paid the registration fees therefor. Where organizations and/or individuals that have their houses and/or land recovered have not yet paid the registration fees for the recovered houses and/or land (except where they do not have to pay or are exempt from paying such under policies or decisions of competent bodies), they must pay registration fees for the compensation houses and/or land (including the part of houses and/or land in excess of the compensation parts of houses and/or land). For these cases, the house and/or land owners shall have to produce the following to the local tax agencies where the ownership and use rights are registered:

- The decisions to recover houses and/or land, issued by competent State bodies.

- Vouchers on registration fee payment by owners of the recovered houses and/or land (the originals, copies or written certification of agencies managing house and land dossiers) or decisions on registration fee exemption of competent State bodies.

- The decisions of the competent State bodies to assign houses and/or land to organizations and/or individuals entitled to the compensation, clearly inscribing the locations and areas of the compensation houses and/or land. For houses and/or land bought with the compensation money, the organizations and individuals receiving the compensation money shall not have to pay the registration fee once corresponding to the amount of compensation money and when declaring the registration fee shall have to produce to the tax agencies the receipts and papers on lawful house and/or land sale and purchase, assignment according to the provisions of law, together with vouchers on the reception of compensation money paid by the house and/or land recovering agencies.

In order to avoid non-collection or under-collection of registration fee, the tax agencies, after settling the case with non-collection of the registration fees for houses and/or land bought with the compensation money, shall inscribe in the compensation money-receiving vouchers of the subjects the following: "Already settled with non-collection of registration fee at declaration form No�" Where the value of the house and/or land with ownership and use registration (inscribed on sale, purchase, assignment invoices or papers) is larger than the received compensation money amount, the difference shall be liable to registration fee.

h) Assets of organizations and/or individuals that have been granted the ownership and/or use certificates, when having their ownership and/or use rights re-registered (regardless of whether or not their owners have already paid the registration fees) shall not be liable to registration fee in the following cases (except where arises the increase in the house and/or land areas or the change in the house grade as compared to the ownership and/or use certificates, the registration fee must be paid for such increase difference):

h1- The asset owners have been granted the ownership and/or use certificates by the competent bodies of the Democratic Republic of Vietnam State, the Provisional Revolutionary Government of the Republic of South Vietnam, the Socialist Republic of Vietnam State or the competent bodies of the former regime, who have changed them for the new ownership and/or use certificates without changing the asset owners.

h2- Assets placed under the ownership and/or use right or (management right) of enterprises (the State enterprises and enterprises of other economic sectors) which are equitized into joint stock companies. For this case, the joint stock companies shall have to declare to and supply the local tax agencies where the ownership and/use rights are registered the following dossiers:

- Copies (notarized) of the decisions of the competent State bodies on the transformation of enterprises into joint stock companies.

- List of assets transferred from the enterprises to the joint stock companies (for partially equitized enterprises, there must be decisions on transfer of their assets) containing the names of assets subject to the procedures for registration fee declaration and papers certifying that the registered assets have lawful origins.

Where the joint stock companies assign or transfer the assets to other organizations or individuals for the ownership and/or use right registration, they shall have to pay the registration fee.

h3- For assets with common ownership and/use certificates already granted to the family households (co-owners, co-users of the assets in the ownership and/or use right certificates), when being divided to family members, the persons given the divided assets shall not have to pay registration fee.

For property ownership and/or use right certificates bearing the name of only one person, such property shall not be regarded as the one under the common ownership and/or use of the whole family household. However, to suit the reality in Vietnam, if the property owner transfer the property to his wife (or her husband), children (including adopted children, daughters-in-law, sons in law), parents (including the foster parents), the persons receiving the property shall not have to pay registration fee; if the property is transferred to other persons (than husband, wife, children, parents as mentioned above), the persons receiving the property shall have to pay registration fee.

i) Assets of organizations or individuals that have already paid registration fees therefor (except for case of non-payment or exemption under policies or decisions of competent bodies), which are later transferred to other organizations or individuals for ownership and/or use right registration, shall not be liable to registration fee in the following cases:

i1- Where organizations or individuals contribute their properties as capital to joint ventures or partnerships with legal person status (State enterprises, private enterprises, enterprises operating under the Foreign Investment Law, limited liability companies, joint stock companies, etc.); or cooperative members contribute capital with their properties to the cooperatives, the property-receiving organizations shall not have to pay the registration fees for the property contributed as capital; or when these organizations dissolve and divide their properties to member organizations and individuals with ownership and/or use right registration. Besides, if the cooperatives decide the transfer of properties among their members, the property recipients shall not have to pay registration fee when re-registering the ownership and/or use rights.

i2- Where corporations, companies or enterprises transfer their properties to their member units or transfer properties among their member units (regardless of whether the member units practice the independent- or dependent-cost accounting) in form of capital increase or decrease inscription.

In case of transferring properties between corporations, companies or enterprises with their independent cost-accounting member units or transferring properties among independent cost-accounting member units by mode of sale and purchase, assignment, exchange (not in form of capital increase or decrease inscription), the registration fee must be paid.

i3- Where the properties are divided or contributed due to division, separation, consolidation, merger, dissolution, renaming of organizations by decisions of competent bodies (except for case of renaming made simultaneously with the change of property owner such as: replacement of old founding members with new ones, etc. , the registration fee must be paid).

Non-payers of registration fee being subjects mentioned in Points i1, i2 and i3 above shall have to supply the local tax agencies where the ownership and/or use right is registered the following dossiers:

- Vouchers on registration fee payment by property owners before the property is transferred according to the prescribed regime (except for case of non-payment as prescribed by law).

- The establishment decisions or operation charters of property-receiving organizations (originals or copies), together with the list of member organizations and individuals. Besides, for divided or contributed properties mentioned in Point i3, the competent State bodies� decisions on division, separation, consolidation, merger, dissolution are also required.

- The business cooperation contracts (for cases mentioned in Point i1) or decisions (originals or copies) on division or transfer of properties in form of capital increase or decrease inscription of the competent authorities (for cases mentioned in Point i2).

i4- Where properties are removed to localities where they are used, without changing the property owners or users. For this case, the property owners shall have to produce to the local tax agencies where their use are registered the property dossiers, declaration forms and registration fee payment vouchers returned by local police offices of the departure localities. If the property owners fail to produce the declaration form and registration fee payment vouchers made at the departure localities (except for case of payment exemption as prescribed by law), the local tax office of the destination locality shall retrospectively collect the registration fee arrears and, depending on the seriousness of the violation, also sanction the administrative violations under the provisions of Decree No. 176/1999/ND-CP of the Government.

j) Gratitude houses, including land associated with houses, registered under the beneficiaries� names for ownership and use. For this case, the house recipients shall have to declare them and supply the local tax agencies where the registration is made the following dossiers:

- Dossiers on the lawful origins of the houses and land handed by the house/land donors to the recipients.

- Papers on the transfer of the house/land ownership and use between the two parties (the donor and the recipient) with certification by the State Public Notary.

k) Special-use vehicles, including: fire engines, ambulances, garbage (including other impurities in sanitary and environmental treatment) trucks, road cleaners (including road sweepers); vehicles for war-invalids, sick soldiers, disabled people, with ownership right being registered under the names of such war-invalids, sick soldiers or disable persons. Special-use vehicles prescribed at this Point must satisfy the following conditions:

- Actually installed with special-use equipment in complete sets, such as special-use water or chemical tanks and spray hoses (for fire engines, road cleaners), stretchers, sirens (for ambulance vehicles), garbage rotopress containers or cranes, lifting devices, garbage collectors (for garbage truck), motor three wheelers (used exclusively for war-invalids, sick soldiers, disable persons).

- Certification by the customs offices (the import goods declarations) or the manufacturing units (invoices on sale of goods produced and/or assembled in the country) that they are special-use vehicles.

- The business registration certificates or occupation practicing certificates corresponding to the type of vehicles registered for ownership and/or use under the names of organizations or individuals stated in the business registration certificates of practicing certificates; except for the following cases where the business registration certificates or occupation practicing certificates must not be produced:

+ Fire fighting units with the State management over the ownership of fire engines.

+ Public hospitals and medical establishments under the ministries, branches, central or local agencies, which register the ownership of ambulances.

+ Urban environment sanitation companies which register the ownership of garbage trucks, road cleaners.

+ War-invalids, sick soldiers and disable persons who register the ownership of motorized three wheelers.

+ Where these special-use vehicles have been modified into non-special use vehicles such as lorries, passenger cars, small cars and motorized two wheelers of various kinds, regardless of their users and use purposes, they are all liable to pay registration fees before they are registered for ownership and use.

l) Ship hulls and complete engine set, car frames and complete engine sets, motorcycle frames and complete spare engine set must be re-registered within the warranty time limit. For this case, the property owner shall have to supply the tax agency the following:

- The copy of the property warranty.

- Bill for exwarehouse of replacement property, enclosed with papers on the recovery of old property, issued by the seller to the buyer.

m) Properties being goods permitted for business of organizations or individuals that have registered their business activities but without registering the ownership and/or use rights with the competent State bodies.

For example: An equipment and spare part company is licensed by the competent State body to deal in motorbikes, the number of motorbikes are commodities for business, if they are not registered for ownership and/use rights, the registration fee shall not be declared and paid; if they are registered for ownership and/use right, such company shall have to declare and pay the registration fee.

II. BASES FOR REGISTRATION FEE CALCULATION, DECLARATION

AND PAYMENT

1. The bases for registration fee calculation are the registration fee calculation price and the registration fee rate (%) to be determined as follows:

The payable Registration The

registration = fee calculation x registration

fee amount price fee rate (%)

The payable registration fee amount according to the above calculation method shall be 500 million (five hundred million) dong/ a property/ a registration time at most. Particularly the production/business workshops (including land attached to workshops) shall be included in the workshops within the premise of a production and business establishment; if such production and business establishment registers the ownership and use rights once or in many times, the entire workshop in the same premise of a production and business establishment shall be subject to the highest registration fee level of 500 million dong.

For example: Company A has five workshops in a premise of 100,000 m2; the total value of all five workshops (including land) in the premise is 150,000 million dong and the value of each workshop is 30,000 million dong, the registration fee shall be determined as follows:

- If Company A declares and pays the registration fee in lump sum, the registration fee amount is determined as 150,000 million dong x 1% = 1,500 million dong and Company A shall only have to pay 500 million dong as the registration fee.

- If Company A makes the registration fee declaration and payment in five times (each time for one workshop), the payable registration fee amount for the first time shall be 300 million dong (30,000 million x 1%); the payable amount for the second time shall be 200 million dong (instead of 300 million dong); for the subsequent registration fee declarations for 3 remaining workshops, Company A shall not have to pay the registration fee (as it has already been fully paid the registration fee, as prescribed)

2. The registration fee calculation price is the value of the property liable to registration fee according to the domestic market price at the time of registration fee calculation.

The registration fee calculation price for a number of specific cases is stipulated as follows:

a) For land, it is the land price set by the People�s Committees of provinces and centrally-run cities according to the land price bracket prescribed by the Government.

The land price The land The

for registration = areas liable to x land price per

fee calculation registration fee square meter (m2)

- The land area liable to registration fee is the entire area of the land in the premise under the lawful use right of the organization or individual that registers its use with the competent State body.

- The per-m2 land price is the price set by the People�s Committees of the provinces and centrally-run cities (hereafter referred collectively to as the provincial People�s Committees) and applicable in the localities and the distribution coefficient for each floor (with regard to land for construction of condominium for many households, if any) according to the land price bracket prescribed by the Government (regardless of whether the actual transferred land price is larger or smaller). A number of specific cases shall be applied as follows:

+ For land attached with houses under the State ownership and sold to the current tenants under the Government�s Decree No.61/CP of July 5, 1994, the registration fee calculation price is the actual sale price inscribed on the house/land sale invoice (of the type issued by the Finance Ministry) under the decisions of the People�s Committees of the provinces or centrally-run cities.

+ For land assigned by the State in forms of bidding or auction (which are organized by the State), the registration fee calculation price shall be the bid winning price or the auction price actually inscribed on the invoice.

b) For other properties (besides the property being land stated at Point a above), the registration fee calculation price shall be the actual value calculated according to the market price at the time of registration fee calculation. The registration fee calculation price for a number of specific cases shall be determined as follows:

b1-

The house price The house The

for registration = areas liable to x per-square

fee calculation registration fee meter price

- The house area liable to registration fee shall be the entire area of the flooring space (including area of the support construction) of an apartment (for condominium houses) or a building under the lawful ownership of the organization or individual that has registered the ownership with the competent State body.

- The per-m2 house price is the actual value according to the market price for each square meter of the flooring space of the house according to its grade and the actual quality of the house at the time of registration fee declaration. Where the house is received together with land, the house price shall be determined as the house-land price (including both land and house) minus (-) the land price set by the provincial People�s Committees as stated at Point a above. Particularly, the price for calculation of registration fees of houses under the State ownership and sold to the current tenants under the Government�s Decree No.61/CP of July 5, 1994 shall be the actual sale price inscribed on the invoice of house sale by decisions of the provincial People�s Committees (including cases where the subjects enjoy preferences with non- payment for house and/or land purchase, such house and/or land shall not liable to registration fee).

b2- For properties bought directly from establishments licensed to produce and/or assembly them in the country (called collectively as production establishments), it is the actual payment price (the sale price included with the value added tax) inscribed on lawful sale invoice.

Organizations and individuals that buy goods from the sale agents which directly sign agency contracts with production establishments and sell goods at the prices set by the production establishments are also considered as having bought such properties directly from the production establishments. For this case, the production establishments shall have to inform in writing the tax agencies of the localities where the agents sell goods of the sale price of each kind of goods belonging to the properties liable to registration fee in each period. The tax offices shall compare the sale prices inscribed on sale invoices issued by the agents to customers with the sale prices according to the price notices of the production establishments; if they are compatible, the registration fee shall be calculated according to the actual payment price. Where the sale price inscribed on the sale invoice issued by the sale agent to the customer is lower or higher than the sale price notified by the production establishment, it shall be determined according to the table of registration fee calculation minimum prices set by the provincial People�s Committees.

b3- For properties bought with installment payment, it is calculated according to the lumpsum sale price, with the value added tax on such properties included therein (not calculating the installment payment interests).

b4- For properties bought by mode of bidding or auction in strict accordance with the law provisions on bidding and auction (including the purchase of confiscated goods which are sold out), the registration fee calculation price shall be the bid winning price, the auction price or the actual purchase price of confiscated goods inscribed on sale invoices.

b5- For the properties mentioned at Points b1, b2 and b3 above, if the actual value cannot be determined according to the market price or the price inscribed on the vouchers is not compatible to the market price at the time of registration fee calculation, it shall be determined according to the registration fee calculation minimum price index set by the provincial People�s Committees (except for cases prescribed at b2). For the properties the provincial People�s Committees have not yet prescribed the minimum prices for registration fee calculation, it shall be determined according to the market prices of the corresponding types of properties or determined as being the import price at the border gate (CIF) plus (+) the import tax, the special consumption tax (if any) and the value added tax according to the regime prescribed for the corresponding types of property (regardless of whether they are payers or non-payers of tax).

Basing themselves on the above guidance, the People�s Committees of the provinces and centrally-run cities shall determine and issue the registration fee calculation minimum price index applicable to their respective localities according to the market prices in each period. In case of necessity, the provincial/municipal People�s Committees may authorize in writing the provincial/ municipal Tax Department directors to decide the promulgation of registration fee calculation prices for a number of properties such as ships, boats, cars, motorbikes, hunting guns, sport guns, and after the promulgation, it must be reported to the Finance Ministry.

3. The registration fee rate (%) is prescribed as follows:

a) For houses, land: 1%

b) For ships, boats: 1%. Particularly for offshore fishing ships, it is 0.5%.

The offshore fishing ships are those installed with the main engine of 90 horse power (CV) or more, with offshore fishing registration in localities of residence as prescribed in Article 2 of the Regulation on management and use of credit capital for projects for building or modification of offshore-fishing ships and services ships, issued together with Decision No. 393/TTg of June 9, 1997 of the Prime Minister. For this case, the ship owners shall have to produce to the local tax agencies where registration is made the following:

- Papers verifying the lawful origin of ship, inscribing clearly the engine number, capacity of the main engine of the ship which is liable to registration fee declaration.

- Offshore fishing practice registration.

c) For automobiles, motorbikes, hunting guns, sport guns: 2%.

Particularly for motorbikes with registration and registration fee payment in Vietnam from the second time on, it is 1%.

The motorbikes with registration and registration fee payment from the second time on are understood as motorized two-wheelers, three-wheelers and lambrettas, for which the registration fee was already paid in lumpsum or installments (including cases where the ownership certificates are granted or not), and which are later transferred to other subjects for registration fee declaration and payment, the subsequent registration fee declarers and payers shall pay the registration fee only at the rate of 1%. For this case, the property owner, when making registration fee declaration and payment, shall have to produce to the local tax agencies where the registration is made the following dossiers:

- The paper on lawful transfer of motorbikes (if any)

- The vehicle ownership certificate issued by the competent State body (for vehicles changed hand within a locality) or the vehicle ownership within a locality) or the vehicle ownership registration dossier (enclosed the registration fee declaration and the registration fee payment vouchers) issued by the police of the locality of the property transferres (except for case of non-payment as certified by the tax agency).

4. Organizations and individuals having properties liable to registration fee (regardless of whether they are payers or non-payers) shall:

a) Upon each time of receiving (purchase, exchange, donation, gift, heritage, inheritance�) the property, have to make the registration fee declaration with the local tax agencies where the ownership and use thereof are registered, and to bear responsibility for the accuracy of their declaration according to the following regulations:

a1- The timelimit prescribed for registration fee declaration is 30 days from the date the paper on lawful property transfer between the two parties is made or the date the certification of "lawful property dossier" is made by the competent state body. For properties with their ownership or use rights transferred before January 1st, 2000 (the effective date of Decree No. 176/1999/ND-CP), if the registration fee is yet declared, the date for registration fee declaration is counted from January 1st, 2000.

a2- The registration fee declaration form printed, issued and granted by Tax Departments of provinces and centrally-run cities to registration fee declarers (fee of charge).

a3- The registration fee declaration form made separately for each property in two copies, filling in all contents therein (section for the submitters), and sent to local tax agencies where the property ownership and use is registered. After the tax agency examines and writes certification in the transfer declaration, one copy shall be kept at the tax agency and the other is returned to the submitter.

b) Have to full supply to the tax agencies and be answerable before law for, the dossiers and voucher on lawful origins of the property, and the bases for registration fee calculation, including:

- Papers verifying the lawful origin of property

- Invoice on lawful purchase and sale of property (for cases of purchase, sale, transfer, exchange of property in which the property transferrer are production/business organizations or individuals); the sale invoice of confiscated goods (for cases of purchase of confiscated goods) or the decision on property transfer, assignment or liquidation (for cases where State administrative and public-service agencies, socio-political- professional organizations not engaged in production and/or business); or the property transfer paper signed between the property transferrer and the transferee with certication by the Public Notary or the competent State body (for case of property transfer between non-production/business individuals).

c) Have to pay the registration fee in full and on time stated by the tax agencies� notices according to the payment order and procedures prescribed in Circular No. 41/1998/TT-BTC of March 31, 1998 of the Finance Ministry guiding the regime of concentrating and managing State budget collections through State Treasury.

c1- On the basis of the tax agencies� notices, organization and individuals shall pay the registration fee directly into the State Treasury. For cases where in localities the registration fee collection through the State Treasury is not yet organized, the registration fee shall be paid through the tax agencies. The registration fees shall be paid in Vietnamese currency according to corresponding chapter, type, clause, Item 033 of the State budget contents.

c2- Registration fee payment vouchers: Organizations and individuals paying registration fees directly at the State Treasury shall use the voucher "State budget payment paper". After fully receiving the registration fee money, the State Treasury shall make certification in the payment paper that "registration fee is already collected", signed, stamped and transferred according to regulations. Where the tax agencies directly collect the registration fees, the "registration fee collection receipt" issued by the Finance Ministry (the General Department of Tax) shall be used.

The State budget payment paper or the registration fee collection receipt, enclosed with the tax agency�s registration fee payment notice (the registration fee declaration form enclosed with the tax agency�s notice) handed to the fee payers shall be the voucher acknowledging the payers have fulfilled their obligation of registration fee declaration and payment in order to effect the property ownership and use registration with the competent State bodies.

Where organizations and/or individuals demand the registration fee payment vouchers for accountancy accounting, the agencies having directly collected the registration fees (the State Treasury or the tax agencies) shall have to grant 01 additional receipt of money according to the regulations of the Finance Ministry (the General Department of Tax).

c3- Organizations and individuals that pay registration fees may account the fixed asset value increase corresponding to the amount of registration fee already paid into the State budget.

d) For the properties purchased and sold or with ownership and use rights transferred before the effective date of Decree No.176/1999/ND-CP (January 1st, 2000) and with the registration fees not yet paid by their current lawful owners and/or users, the registration fee must be paid and paid only once according to the provisions of Decree No.176/1999/ND-CP and guidance in this Circular (not to pay on other�s behalf or being sanctioned, for cases where the properties had been transferred many times before January 1st, 2000).

Where the properties liable to registration fee are transferred after January 1st, 2000, upon each transfer, the ownership and use rights must be registered with the competent State bodies and the registration fee must be declared and paid for each transfer (except where organizations and/or individuals are granted certificates for trading in corresponding goods items, liable to value added tax and the enterprise income tax as prescribed by law). Where the property transferors have not yet made the registration fee declaration and payment, the property transferees shall have to do so for the property transferors according to the provisions of law.

5. The tax agencies shall have the following specific tasks and powers:

a) To organize and guide organizations and individuals having properties liable to registration fees in making the registration fee declaration according to the prescribed regimes:

a1- The tax offices of the districts and provincial capitals shall guide the registration fee declaration and calculation and issue notices on registration fee collection with regard to houses, land, ships, boats, motorcycles (if any), hunting guns and sport guns of individuals, family households, cooperatives, non-State economic subjects, which, according to regulations, must be registered for ownership and use rights with the competent State bodies of district or provincial capital level (except for cases of stipulated registration at the competent State bodies of the provincial/municipal level).

a2- The provincial/municipal Tax Departments (Registration Fee and Other Collections Section) shall guide the registration fee declaration and calculation and issue notices on collection of registration fees for the properties which, according to regulations, must be registered for the ownership and use rights with the competent State bodies of the provincial/municipal level; the properties of organizations, on which the taxes are collected by the provincial/municipal Tax Departments; the properties of State enterprises, enterprises of Party organizations, mass organizations, socio-political organizations, enterprises operating under the Law on Foreign Investment in Vietnam, private enterprises, limited liability companies, joint stock companies, etc.; houses and land in the urban districts of cities and provincial towns and properties of foreign organizations and individuals.

Particularly for Ho Chi Minh City, which is large in land area and in the volume of properties liable to registration fee, the municipal Tax Department may assign the tax offices of the urban and rural districts to organize the collection of registration fees for a number of properties under the district management. But before doing this, it must obtain the consent of the Finance Ministry (the General Department of Tax) and shall have to guide and frequently inspect the registration fee collection by such tax offices, ensuring the implementation in strict accordance with the provisions of law and avoiding the State budget under-collection.

b) To request the registration fee payers to supply relevant dossiers and vouchers; examine the declaration dossiers and documents in order to determine the price for registration fee calculation according to the principle prescribed in Article 5, Decree No.176/1999/ND-CP of the Government and the specific guidance at Point 2, Section II of this Circular; to calculate and notify the payable registration fee amount to the fee payers according to the following regulations:

- For properties being automobiles, motorbikes, hunting guns and sport guns ( which require not much time for examination and verification of dossier and valuation of their present status), the tax offices shall, right on the day of receiving the property declaration and dossiers from the subjects, have to make certification, fully inscribing the prescribed indexes in the declaration forms and notify the subjects of the payable registration fee amount, the place for payment according to regulations (the section for exclusive use by the tax office in the declaration form).

- For properties being houses, land, ships, boats (for which the examination and verification of dossiers and property status shall take much time), the tax offices, upon receiving the declaration forms and property dossiers from the subjects, must issue the " appointment tickets" to the dossier submitters. Such appointment ticket must clearly inscribe the date of receiving the dossiers, the papers included in the dossiers and the deadline for reply. The tax offices shall examine the dossiers, inspect the real status of the property, make certification and inscribe in full the prescribed indexes in the declaration form (section for exclusive use by the tax office). Within 07 days after fully receiving the dossiers and declaration form from the subjects, the tax office must issue the registration fee payment notice (according to form set by the General Department of Tax) to the fee payers on the payable amount, the payment time and place as prescribed. The registration fee payment notices must be addressed to the subjects at least 3 days before the payment date inscribed in the notices.

If past the registration fee payment deadline inscribed in the notice, the subject still fail to make the payment, another notice shall be issued; if after the second notice is issued, the subject still fail to make the payment, the third notice shall be issued, clearly stating the payable amount which includes the registration fee amount and the fine amount for late payment. The time for calculation of late payment fine shall be counted from the date of fee payment into the State budget inscribed on the first notice of the tax agency.

- Where in localities the registration fees have not yet been collected via the State Treasury, the tax offices shall have to directly collect the registration fees and remit them into the State Treasury daily (at the end of the day or the beginning of the following day) according to the procedures prescribed at Point 3.1.2(b), Section II, Part B of Circular No.41/1998/TT-BTC of March 31,1998 of the Finance Ministry.

c) To compile accounting books updated with the collected amount and paid amount of each subject. Monthly, on the 5th day at the latest, to complete the comparison between the declaration forms and the money payment papers or the registration fee collection receipts and vouchers of remittance of money into the State Treasury (for cases where the tax offices directly collect the money) in order to determine the registration fee amounts to be collected, already collected and already paid into the State budget of the preceding month, to take measures for handling cases of late payment, overpayment (underpayment) or other violations and report such to the superior tax office.

d) To settle complaints about registration fee according to competence as prescribed in Article 11 of Decree No.176/1999/ND-CP or to transfer the dossiers to the competent State bodies for handling according to law.

e) To handle administrative violations committed by organizations and/or individuals against the registration fee declaration and payment regime prescribed in Article 12 of Decree No.176/1999/ND-CP of the Government.

f) To keep and preserve books, vouchers and dossiers related to the properties for which the registration fees have been paid for at least 5 years after the subject fully pay the registration fees according to the notices of the tax offices.

6. According to Article 9 of Decree No.176/1999/ND-CP of the Government:

a) The State bodies competent to register the property ownership and use rights shall not accept the registration dossiers, shall not issue the registration plates and the property ownership and use right certificates to organizations and individuals that fail to fully supply the following dossiers:

- The registration fee declaration form already certified by the tax office or the registration fee payment notice of the tax office.

- The registration fee payment vouchers (the paper on remittance of money into the State budget or the registration fee collection receipt). Where a subject has no registration fee payment vouchers, his/her/its registration fee declaration form must be certified by the tax office where the registration is made that "the registration fee shall not be paid or exempt".

b) The State bodies competent to register the property ownership and use rights shall have to coordinate with the tax offices in inspecting the observance of legislation on registration fee by organizations and individuals that have registered the rights to ownership and/or use of properties liable to registration fee. Where organizations and/or individuals are detected as having committed acts of falsely declaring or evading the payment of registration fee, they must coordinate with the tax offices in retrospectively collecting the registration fee arrears and imposing sanctions according to the provisions in Clause 3, Article 12 of Decree No.176/1999/ND-CP of the Government.

III. SETTLING COMPLAINTS AND DENUNCIATIONS, HANDLING OF VIOLATIONS AND COMMENDATION:

1. Registration fee-paying organizations and individuals may complain against or denounce tax officials or tax offices that collect registration fee for their violations of law provisions on registration fee.

a) Where the complaining organizations and/or individuals disagree with the decisions of the complaint- settling bodies or past the time limit prescribed in Article 11 of Decree No.176/1999/ND-CP of the Government and the guidance at Point 2 of this Section their complaints have not yet been settled, they may lodge their complaints to the immediate superior tax office of the complaint-receiving bodies.

b) Where the complaining organizations and/or individuals disagree with the tax offices� decisions on settlement of their complaints, they may initiate lawsuits at courts as prescribed by law.

Pending the settlement, the subjects still have to pay the registration fee and fines (if any) according to the tax offices� notices in full and on time.

2. The tax office�s responsibilities and powers in settling complaints:

a) The tax offices that directly receive the written complaints about registration fee shall have to consider and settle them within 15 days after the receipt of the written complaints. For complicated cases and matters which take much time to conduct the investigation and verification, they must notify the subjects thereof, but the time limit for settlement must not exceed 30 days from the date of receiving the written complaint. If the cases of matters do not fall under their settling jurisdiction, they must transfer the dossiers or report to the bodies competent to settle them and inform the complainants thereof within 10 days after the receipt of the written complaints.

b) The tax offices which receive the written complaints may request the complainants to supply dossiers and documents related to the complaints. If the complainants refuse to supply them without any plausible reasons, the tax offices may refuse to consider and settle the complaints, then inform the complaints of the reasons for their refusal within 15 days after the receipt of the written refusal to supply the dossiers and documents or after the final day of the time limit for supply of dossiers and documents.

c) If detecting and concluding that a subject has made false declaration and evaded the registration fee payment in order to be granted the property ownership and use right certificate, the tax office shall have to retrospectively collect the registration fee and fines for five years backwards from the date of detecting the false declaration of registration fee payment evasion. The time limit for payment of registration fee and late payment fine shall be 15 days after the conclusion or the decision is made by the competent body according to the provisions of law.

d) For the amounts of registration fee and/or fines collected in contravention of the regulations and already remitted into the State budget, the tax offices shall have to propose the finance bodies to order the reimbursement thereof. Based on the reimbursement order of the finance bodies, the State Treasury shall have to make deduction from the budget fund for reimbursement to the subjects. The time limit for carrying out the procedures for reimbursement of such registration fee and/or fines shall be 15 days after receiving the competent body�s handling decision according to the provisions of law.

3. The registration fee payers that violate law provisions on registration fee shall be handled as follows:

a) If they fail to comply with the procedures on registration fee declaration as provided for in Article 7 of Decree No.176/1999/ND-CP of the Government and the guidance at Point 4a, Section II of this Circular, they shall, depending on the nature and seriousness of their violations, be sanctioned according to guidance at Point 1, Section II of Circular No.128/1998/TT-BTC of September 22, 1998 of the Finance Ministry guiding the implementation of the Government�s Decree No.22/CP of April 17, 1996 on sanctioning the administrative violations in the field of tax.

b) If they delay the payment of registration fee and/or fine against the payment deadlines inscribed on the tax offices� notices or the competent bodies� decisions on sanctions against the administrative violations, they shall, besides having to fully pay the payable registration fee amount and fine amount, have to pay a fine equal to 0.1% (one thousandth) of the late paid amount for each day of late payment.

c) If they fail to pay the registration fee amount in full as prescribed, they shall not be granted the property ownership and/or use certificates by the competent State bodies. If they make false declarations and evade the registration fee payment in order to be granted the property ownership and use certificates (like making invoice, vouchers or dossiers untrue to the reality, thus falsifying the bases for determining the payable registration fee amount; forging vouchers, registration fee payment receipts; erasing vouchers, registration fee payment receipts for properties of small value into those for properties of big value; colluding with other individuals to evade the registration fee payment, etc.), they shall, apart from having to fully pay the registration fee amount prescribed by law, be subject to a fine of between one and three times the registration fee amount falsely declared and evaded, depending on the nature and seriousness of their violations. For serious cases, the violators may be examined for penal liability as prescribed by law.

The procedures and competence for sanctioning and collecting fines on administrative violations on registration fee stated at this Point shall comply with the guidance in Section III and Section IV of Circular No.128/1998/TT-BTC of September 22, 1998 of the Finance Ministry guiding the implementation of the above-said Decree No.22/CP of April 17, 1996 of the Government.

4. Tax officials and other individuals as well as organizations that violate the law provisions on registration fee shall be handled as follows:

a) Where they cause damage to the registration fee payers due to the lack of responsibility or wrong handling, they must compensate for damage to such persons according to the provisions of law and may, depending on the nature and seriousness of their violations, be disciplined or examined for penal liability according to law.

b) Where they abuse their positions and powers to illegally take the possession of registration money, fines or to falsify dossiers on registration fee calculation, causing losses to the State revenues, they shall have to return to the State the entire amount of registration fee and/or fines they have illegally appropriated or make compensation for the entire damaged caused by their violations and may, depending on the nature and seriousness of their violations, be disciplined or examined for penal liability according to law.

c) Those who abuse their positions and/or powers to collude with and/or to screen the violators of legislation on registration fee or commit other acts of violating the law provisions on registration fee shall, depending on the nature and seriousness of their violations, be disciplined or examined for penal liability according to the provisions of law.

5. Tax offices and officials as well as organizations and individuals that have merits in detecting the violations of law provisions on registration fee shall be commended and/or rewarded according to Article 15 of Decree No.22/CP of April 17, 1996 of the Government and the guidance at Section V of Circular No.128/1998/TT-BTC of September 22, 1998 of the Finance Ministry on sanctioning administrative violations in the field of tax.

IV. IMPLEMENTATION ORGANIZATION

1. This Circular takes effect as from January 1st, 2000 when the Government�s Decree No.176/1999/ND-CP of December 21,1999 comes into force. The legal documents prescribing the registration fee according to the Government�s Decree No.193/CP of December 29, 1994, which are contrary to Decree No.176/1999/ND-CP of the Government and the guidance of this Circular shall all be annulled.

With regard to the properties for which the registration fee declaration had been made before January 1st, 2000 and the payment notices had been issued by the tax offices before January 1st, 2000, but the payment has not yet been made, the registration fee payment shall comply with Decree No.176/1999/ND-CP, and the sanction shall be imposed for the late payment according to the provisions in Clause 2, Article 12 of Decree No.176/1999/ND-CP, counting from the date the registration fee must be paid, as inscribed on the first notice.

2. The General Department of Tax, the State Treasury, the State bodies competent to register the property ownership and use rights and organizations as well as individuals that have properties liable to registration fee shall have to implement Decree No.176/1999/ND-CP of the Government and the guidance in this Circular.

If any problems arising in the course of implementation, organizations and individuals are requested to promptly report them to the Finance Ministry for study and additional guidance.

For the Finance Minister

Vice Minister
PHAM VAN TRONG